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The objective is not free trade among regional or linguistic blocks but the freest world trade. In 1941, for example, local government expenditures on schools were $2, 240 million out of a total outlay, exclusive of debt retirement, of $6, 730 million. Consumer products direct prestige wwc solutions. And we allowed the system itself to deter mine the distribution of the product and the direction of demand. Issue may be taken with this statement on two counts. The result was that, e. p., Austria, Germany, Italy, imported more grain from eastern Europe and less from overseas.
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One need only look at American history to see at what price, in terms of restraint upon external, world trade, one purchases freer trade within a federal system. P O S T W A R PUBLI C D E B T 183 national income rises to $120 to $150 billion or more. Most serious of all, large groups in the population are excluded from coverage, and under the present law at least one-third, and probably more, of the people who are covered for tax purposes will never be able to qualify for benefits. Prestige products and prices. Throughout the whole of the last 20 years, the rate of increase of productivity of labor has been unprecedented. Upload your study docs or become a. Possibly, some such organization will grow out of wartime or immediate postwar relief organizations.
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The hunger of primitive peoples was a different kind of hunger from that suffered by modern man. The whole basis for peaceful economic cooperation through free international exchange is lost with the disappearance of free internal trade. 202 POSTWAR ECONOMIC PROBLEMS SOME STATE AND LOCAL PROBLEMS The situation with respect to expansion of public work expendi tures by a single city is much like expansion of credit by a single bank; "leakages" to other cities (or banks) will be high. Consequently, the community must work out general principles by which to determine whether or not the provisions of trade agreements conflict with public policy; and it must work out procedures by which to obtain modification of agreements which conflict with public policy. This is the feeling that the first step toward the building of an integrated world economy must be the establishment of an international monetary system something like the prewar gold standard. The terms of trade may even move so far that the country experiences a net loss in real income as a result of an increase in efEciency in the exporting industries. The optimum use and type of development which any tract of land A G R I C U L T U R A L PROB LEMS 303 should receive is highly conditioned by the market at the end of the war for different types of farm and woodland products. Furthermore, in order to prevent tax policy (or lack of tax policy) from producing an unfavorable investment function and, therefore, from limiting employment opportunities, the principle needs to be Brmly estab L A B O R A F T E R THE WA R 257 lished that increases in taxes on profits will be made only as a last resort. Proposing a destruction of monopolistic forces in our economy, Prof. Simons argues for a return to nineteenth-century liberalism. 2 The fact remains, however, that there is nothing to assure that the distribution of bargaining power between employers and workers will not produce a large amount of chronic unemploy ment. Prestige consumer healthcare company. It will provide a milieu in which existing impediments to trade can be removed or reduced. Unlike other economic systems, the capitalist system is geared to incessant economic change. There is a growing conviction that inventiveness and bold implementation are essential elements in any public policy which hopes to cope at all successfully with the world which will emerge from this war. So long as a high level of money income could be maintained, he was not concerned over the interest charge.
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Small nations, trading with Germany before the war and not dissatisfied with the immediate terms, recognized a steady weakening of their bargaining position and a prospect of subjugation through trade. 5 billion so that, if restrictions on pur chases of equipment and on construction continue for 2% years, the backlog would amount to over $6 billion. Ovem7^ent in Labor Disputes (New York, 1932) POSTWAR ECONOMIC PROBLEMS INTRODUCTION " Win the war Brst" is a sensible slogan. It can and must content itself with rough approxima tions. National Planning Association, Trade tn Post-war tForM (Washington, 1941), p. ' Alvin H. Rivalry in Retail Financial Services. Hansen and C. Kindleberger, "The Economic Tasks of the Post-war World, " Foretf* 4fatr*, Vol. This will have to be accompanied by foreign lending, public or private, because there is no other way in which the rest of the world can pay for American goods. 1 (October, 1941), pp. The fact that both in Europe and in the United States the capitalist process displayed unmistakable symptoms of strain exactly since the break in the legislative and administrative attitudes of public authority occurred may be significant. Wartime commodity agreements designed for other purposes will presumably be brought into harmony with this policy. THE POSTWAR TRANSITION PERIOD One important distinction must first be sharply drawn. The bolshevist regime is obviously of more than passing importance; yet it could never have established itself without the First World War and the largely accidental ways in which that war affected Russia.
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But something of the probable lines of development can be forecast, if past trends, current needs, and popular demands are correctly appraised. Thus, I seriously suggest that, given a crushing defeat for Germany, T R A D E AN D THE P E AC E *147 the major obstacle to durable peace will be the United States and its excessive governmental centralization. Professor Hansen has estimated the cost of underemployment during the thirties at $200 billion; we cannot afford such a mistake again. N U T R I T I O N, FOOD A T T I T U D E S 287 In 1935 this series of dietary patterns as they were found to exist in fact entered for the Rrst time into the consideration of foodproduction planning. More over, the amount of employment that can be provided by noncontinuous public service projects seems to be very small. If factors Are immobile and their prices rigid (as they frequently are, espe 332 P O ST W AR EC ONO M IC PROBLEMS suppose that the duty is reduced only preferentially for imports from certain countries, e. y., Cuba. Moreover, revolutions in technology with respect to both industrial processes and the uses of materials are creating a situation in which many enterprises and industries will find their position materially changed when the fighting is over.
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The investment plans of private business are determined in considerable measure by national income. They merely tried to accommodate public demand. Thus, even if the existing patterns were applicable for each year taken by itself, they would be wrong for a "telescoped" program. During the summer of 1941, the United States Secretary of Agriculture expressed our government's adherence to much the same policy, coining the catchy if misleading slogan "Food will win the war and write the peace/' It was "to organize in good time the action required to give eSect to this policy" that the British government sent invitations to a historic interallied conference held in London on Sept. 24, 1 9 4 1. Once granted the proposition that clearing away the obstacles to sound replanning and redevelopment is the responsibility of the whole community, Federal financial aid is justihable. There will be equally strong support, however, for the opposite policy of resuming trade with the countries in order that they may be reestablished on a basis that will maintain peace in the world. These fractions mean little as such. This justification is a familiar argument.
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50 in another, with an average for those states of $42. Moreover, the bulk of investment can be under taken by private enterprises. The ending of hostilities will not release all men and women in the armed forces for immediate reintegration in the national econ omy. But bitter experience of the last dozen years, if not of the last century and a half, shows that there is no invisible hand guaranteeing that we shall always be lucky. If this be true, and if the foregoing analysis be applicable to the postwar situation, additional dollars made available to foreigners by increased United States imports may lead to a greater increase in foreign expenditures for American products, leaving the world still short of dollars. Repayment of debt, moreover, may have deflationary effects; and the more impressed one is by the theory that our economy tends to stagnate, the more objectionable is the repayment of debt. Emphasis should be put also upon the revivifying effect upon foreign commerce in the immediate postwar scene produced by the transfer of the prmctpa% of the loans. And yet so long as bargaining is conducted by rather small auton omous units (enterprises, sections of industries, or industries), it is not so much a method by which workers gain wages at the expense of employers as a method by which each of many thousands of small groups of workers limits slightly the employment opportuni ties of all workers. On the contrary, we would be remiss in our responsibilities— and stupid—if we failed to consider postwar problems victorious peace comes.
Number of Pages: IX, 149. If we would recapture these things, we cannot wisely ignore the political and economic philosophy of their time, the traditional liberalism which Howered at the height of world progress and guided or rationalized the policies on which that progress was founded. Limitations on the reduction of expenditures appear also in the form of large outlays for maintenance and replacement, which cannot be cut without impairing essential services (e. p., waterworks, sewers, schools, and hospitals). It is difHcult to foretell how far this tendency will go.